Authors

Disclosure statement

The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

Partners

In the “The Lorax,” an entrepreneur regrets wiping out all the make-believe truffala trees by chopping them down to maximize his short-term gains. As the Dr. Seuss tale ends, the Once-ler – the man responsible for this environmental tragedy – tells a young child that “Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”

The pharmaceutical industry needs them to make and create drugs. For example, one team of U.S.-based researchers estimates that the pharmaceutical value of marine biodiversity for anti-cancer drug discovery could range from US$563 billion to as much as $5.7 trillion.

Insurance companies depend on coastal wetlands to minimize the impact of big storms. For example, an international group of researchers estimated that preserving one hectare of mangroves in the Philippines yields more than $3,200 in flood-reduction benefits each year.

Corporate social responsibility

There is a second reason why big companies are sometimes willing to take action and pay to conserve biodiversity: corporate social responsibility, an ethos that builds into business models a commitment to protect the environment and benefit society.

Danone is a leader in this regard. It established the first partnership agreement between a global environmental convention and a private company over 20 years ago.

Since then, the multinational corporation best known for its yogurt and bottled water has promoted and supported the sustainable use and management of wetlands.

The total area of forests worldwide deemed to be subject to sustainable practices supplying the industry increased from 62 million hectares, 12 percent of the total global forest area, in 2000, to 310 million hectares in 2015, according to the industry group. That’s more than half of the total global forest area. The annual revenue of the world’s 100 largest global forest, paper and packaging companies is over $300 billion.

A new deal for nature

In addition to creating marine reserves, protecting forests, preserving the habitats of wild pollinators and conserving coastal wetlands, the private sector could also help finance conservation efforts in developing countries.

Based on our calculations, if the seafood sector were to set aside up to 20 percent of the increase in profits it gets from sustainably managing marine biomass stocks, it could conceivably spend up to $10 billion annually for marine biodiversity conservation.

And we estimate that by channeling up to 10 percent of the gains from sustainable forest management, the forest products industry could raise as much as $30 billion each year for investment in increasing protected forest area.

An agricultural sector contribution of around 10 percent of the benefits it derives from wild pollination services would amount to about $20 billion to $60 billion per year in additional financing for the conservation, creation and restoration of wild pollinator habitats.

All told, this business-world support could help close the $100 billion gap in global biodiversity conservation funding. This would go a long way toward slowing, and potentially reversing, biodiversity loss.

There are, of course, barriers to corporate conservation. The costs may be high. It may be hard for to businesses to assess the long-term value of biodiversity conservation benefits and integrate them into investment decisions. And it is possible that some of the corporations that take this step could be at a competitive disadvantage, especially in the short term.

But a number of companies are already showing that they believe investing in ecosystem preservation is worth it. In our view, corporate support for international biodiversity conservation is essential to prevent “biological annihilation.”